Ohio public transit agencies set to lose millions each year due to change in state tax law, OPTA's working to restore vital funding
Seven years ago as Ohio struggled to emerge from the worst economic downturn since the depression, cash-strapped transit agencies dependent on sales tax revenue for a significant share of their funding received a much-needed boost when a new law applied state and local sales taxes to health care services provided by Medicaid Managed Care Organizations, (MCOs). The millions of dollars in additional revenue generated made it possible for public transit systems to avoid steep fare hikes and crippling service cuts.
Unfortunately, because the federal government ruled that the MCO tax violates Medicaid rules, the critical revenue it provides will vanish at the end of July. The Kasich administration found a way to permanantenly replace the hundreds of millions of dollars the state receives from the tax but the fix leaves transit agencies by the side of the road after "transistional revenue" from the state runs out in 2019. Unless the governor and the legislature act soon to replace the funding, systems across the state will lose more than $38,000,000 each year beginning in 2019.
OPTA’s made reversing these devastating cuts a priority. You can help by adding your name to our online petition and by contacting the governor and your state legislators. Now is not the time to throw public transit in reverse. Please join in our effort to keep transit rolling today, tomorrow and for years to come.
STATE FUNDING | FAST FACTS
Join the thousands of Ohioans who are asking Gov. Kasich and the members of the General Assembly to fully fund public transit. Simply fill out and submit the form below and we'll add your name to our petition.
STATE FUNDING NEWS & INFO
Learn more about state transit funding by downloading and sharing ODOT's Transit Needs Study. You may view the entire report, a summary or finds snapshot by clicking on the pictures below.
ODOT's Transit Needs Study
Executive Summary of report.
Important findings from ODOT study
A change in state tax law will erase millions of dollars in funding for transit and could result in service cuts, fare increases, and other negative impacts. OPTA's working hard to find a solution. Click here to for the latest news about this critical issue and to join in our effort to solve this fiscal dilemma.
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